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Highlights

  • Greentech Metals Limited (ASX: GRE) shares saw a whopping rally of over 164% on Wednesday.
  • With Wednesday's rally, GRE shares have narrowed their 1-year loss to nearly 10%.
  • Will GRE shares extend Wednesday’s rally in the near future? Let’s study the price chart of GRE to get the answer.

After being in a long downtrend, Greentech Metals Limited (ASX: GRE) shares saw a whopping rally of over 164% on Wednesday, 3 May 2023. With Wednesday's rally, GRE shares have narrowed their 1-year loss to nearly 10%. Worth mentioning here is GRE shares have been falling since August 2022 and made a 52-week low of AUD 0.070 on Tuesday, 2 May 2023.

Wednesday's rally in the materials stock was triggered after the company announced assay and DHEM survey results from the follow-up drill program completed at the Austin prospect in February. Austin is part of the greater Whundo Cu-Zn project. As per the announcement, hole 23GTRC001 drilled at the Austin prospect revealed a copper-dominant mineralised horizon with significantly increased thickness and grades up to 5.4% Cu.

During the drilling programme, "elevated gold and cobalt were also intercepted," the company said. GRE further said the new assays indicate a threefold thickening of the Austin mineralised zone, which is consistent with Austin being a separate mineralising event to the overlying Whundo (East) resource. As per the company, these results are "extremely encouraging" given the significant results for both thickness and grade.

Given this development, will GRE shares extend Wednesday’s rally in the near future? Let’s study the price chart of GRE to get the answer.

GRE’s Technical Analysis:

GRE's price recently broke a downward-sloping trend line by an upside with the support of volumes, indicating the possibility of an upside movement from hereon. Furthermore, RSI (14-period) is moving northward with a reading of 74.93 and, the 21-period and 50-period SMAs are below the current market price, supporting a positive bias. Important support for the stock is positioned at AUD 0.150, while key resistance is placed at AUD 0.210.

Daily Technical Chart – GRE

The technical levels for the stock were evaluated as per the closing price of AUD 0.185 per share as on 03 May 2023, up by ~164%.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period, prices are currently in a bullish trend (Vice – Versa).

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 50-period, prices are currently in a bullish trend (Vice – Versa).

The Orange/ Yellow colour line represents the Trendline.

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period), which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status, while a reading of 30 or below suggests an oversold status.